Biocon to fully merge Biocon Biologics; board approves fundraise up to Rs 4,500 crore
Separately, Biocon will buy the residual stake held by Mylan Inc. (Viatris) for an aggregate consideration disclosed as USD 815 million, of which USD 400 million will be paid in cash.
- Dec 6, 2025,
- Updated Dec 6, 2025 12:21 PM IST
Biocon Limited’s board on December 6 approved a plan to fully integrate Biocon Biologics Limited (BBL) into the parent company and to raise fresh capital to fund the cash portion of the deal.
The board cleared a package of corporate actions that includes a share-swap acquisition of minority stakes in BBL, a cash payment to Mylan (Viatris), a large preferential share issuance to sellers and approval to raise up to Rs 4,500 crore through eligible routes such as a QIP, subject to shareholder and regulatory approvals.
Under the transaction framework approved by the board, Biocon will acquire the remaining shares in BBL held by Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine by issuing shares to those sellers at a swap ratio of 70.28 Biocon shares for every 100 BBL shares. That swap uses a not-less-than price of Rs 405.78 per Biocon share, a valuation that places BBL at USD 5.5 billion, the company said in a exchange filing.
Separately, Biocon will buy the residual stake held by Mylan Inc. (Viatris) for an aggregate consideration disclosed as USD 815 million, of which USD 400 million will be paid in cash and the balance via a share swap using a ratio of 61.70 Biocon shares for every 100 BBL shares.
To discharge the non-cash portion of the purchase consideration, the company approved a preferential issue of up to 17.12 crore equity shares (face value Rs 5 each) to the selling shareholders in exchange for 26.19 crore BBL sale shares, aggregating to Rs 6,950 crore of swap consideration. Because cash is required to settle Mylan’s portion of the sale, the board approved a fundraise of up to Rs 4,500 crore by way of QIP, rights issue, preferential allotment, private placements or any combination permitted under law — all subject to shareholder and statutory approvals.
As an interim liquidity measure to meet the cash remittance to Mylan, the board also approved issuance of commercial paper up to Rs 1,800 crore on a private placement basis. Both the QIP and commercial paper programs are conditional on the approvals and market conditions specified in the filings.
Biocon Limited’s board on December 6 approved a plan to fully integrate Biocon Biologics Limited (BBL) into the parent company and to raise fresh capital to fund the cash portion of the deal.
The board cleared a package of corporate actions that includes a share-swap acquisition of minority stakes in BBL, a cash payment to Mylan (Viatris), a large preferential share issuance to sellers and approval to raise up to Rs 4,500 crore through eligible routes such as a QIP, subject to shareholder and regulatory approvals.
Under the transaction framework approved by the board, Biocon will acquire the remaining shares in BBL held by Serum Institute Life Sciences, Tata Capital Growth Fund II and Activ Pine by issuing shares to those sellers at a swap ratio of 70.28 Biocon shares for every 100 BBL shares. That swap uses a not-less-than price of Rs 405.78 per Biocon share, a valuation that places BBL at USD 5.5 billion, the company said in a exchange filing.
Separately, Biocon will buy the residual stake held by Mylan Inc. (Viatris) for an aggregate consideration disclosed as USD 815 million, of which USD 400 million will be paid in cash and the balance via a share swap using a ratio of 61.70 Biocon shares for every 100 BBL shares.
To discharge the non-cash portion of the purchase consideration, the company approved a preferential issue of up to 17.12 crore equity shares (face value Rs 5 each) to the selling shareholders in exchange for 26.19 crore BBL sale shares, aggregating to Rs 6,950 crore of swap consideration. Because cash is required to settle Mylan’s portion of the sale, the board approved a fundraise of up to Rs 4,500 crore by way of QIP, rights issue, preferential allotment, private placements or any combination permitted under law — all subject to shareholder and statutory approvals.
As an interim liquidity measure to meet the cash remittance to Mylan, the board also approved issuance of commercial paper up to Rs 1,800 crore on a private placement basis. Both the QIP and commercial paper programs are conditional on the approvals and market conditions specified in the filings.